Today, the outlook on retirement is a lot brighter than it was a few decades ago. In general, Americans are living longer and staying healthy. Matt Dixon in Greenville, SC, realizes this puts more pressure on individuals to properly plan for their retirement years. How does one plan for retirement? These three financial goals will help you get started toward successfully planning for your retirement years.
Establish an Emergency Fund
Many people fail to plan an emergency savings fund. However, as you prepare for retirement, Matt Dixon of Greenville, SC, says it’s worth it to make it a priority. The emergency fund comes in handy when you have immediate expenses or when there is an emergency your budget doesn’t cover. An emergency fund should be equal to three to six months of your regular salary.
Retirement Nest Eggs
Matt Dixon in Greenville, SC, says the second goal is to create a financially healthy nest egg or retirement account. Generally, Social Security pays about 40 percent of what an individual brings in when working. To live comfortably, you want about 80 percent of the income you were used to pre-retirement.
Some debts like a house mortgage cannot always be avoided. Other debts can have a negative impact on your budget and can take a huge chunk out of disposable income. If you carry heavy debt, it can negatively affect your credit score as well. Matt Dixon in Greenville, SC, suggests having a savings account for emergencies instead of relying on high-interest credit cards.
If you’re ready to plan your retirement or need help with these three goals, contact Matt Dixon in Greenville, SC, at TruNorth Advisors.
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